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Variable Frequency Drives Market Size - By Voltage (Low, Medium), By Drive (AC, DC, Servo), By Application (Pump, Fan, Conveyor, Compressor, Extruder), By End-use (Oil & Gas, Power Generation, Mining & Metals, Pulp & Paper, Marine) & Forecast, 2024 - 2032

  • Report ID: GMI1185
  • Published Date: Jun 2023
  • Report Format: PDF

Variable Frequency Drives Market Size

Variable Frequency Drives Market size valued at USD 21.1 billion in 2023 and is set to grow at a CAGR of 4.4% between 2023 and 2032. The industry growth is owing to the rising demand for energy efficient systems along with introduction of stringent regulations concerning toward energy consumption. Growing investments and expenditure for infrastructure development has resulted in elevated demand for heating, air conditioning (HVAC) and ventilation systems offering solutions to enhance infrastructure energy output are some of the key factors positively impacting the industry growth. The ability of these units to offer precise control of motor speed that is required for energy savings, process control, and automation will further boost the business dynamics.

Variable Frequency Drives Market

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Variable Frequency Drives (VFDs), also known as adjustable speed drives (ASDs) or variable speed drives (VSDs), are the electronic devices that control the torque and speed of a motor system by altering the voltage and frequency of the supplied power. They can be used in a variety of industrial and commercial applications, including fans, pumps, conveyors, and compressors, to improve energy efficiency and reduce wear and tear on equipment. By adjusting the motor speed to match the load requirements, these units can reduce energy consumption and lower operating costs.

COVID- 19 Impact

Shutdown of industrial operations, significant inhibitions across new project completions, labor shortages, limited manufacturing outputs, and supply chain disruptions are some of the key imperatives that hindered the variable frequency drives market growth prospects during the COVID - 19 outbreak. In addition, restrained investment opportunities across energy-intensive industrial applications amid the pandemic have further implicated the industry landscape. However, respective authorities and companies have implemented new initiatives to uplift restrictions and maintain production capabilities resulting in positive industry growth. Moreover, encouraging government norms towards adoption of energy efficient systems along with accelerated investment for the development of advanced technological systems will complement the variable frequency drives industry landscape.

Variable Frequency Drives Market Trends

Variable frequency drives industry is anticipated to a witness significant momentum on account of the introduction of stringent government mandates focused to promote environment sustainability. In the recent timeframe, the concept of smart manufacturing is gaining traction in large industrial automation fields. For Instance, according to the India Brand Equity Foundation (IBEF), the Indian Government has set an ambitious objective of growing manufacturing output contribution to GDP to 25% by 2025 from 16% currently. The Udyog Bharat 4.0 SAMARTH programme (Smart Advanced Manufacturing & Rapid Transformation Hub) intends to raise awareness of Industry 4.0 in the Indian manufacturing industry and allow stakeholders to overcome automated material handling concerns.

In addition, growing focus on technical enhancements accompanied by launch of Industrial Internet of Things (IIoT) with an aim to offer optimized sizing of systems to enhance & ensure energy efficiency will complement the industry growth.

An upsurge in the demand for continuous and reliable power supply to meet the ever-increasing consumption of electricity along with implementation of stringent energy efficiency norms will encourage the variable frequency drives market deployment. Comparatively lower operation costs with minimal downtime, improved system reliability, heavy lifting capability, substantial control accuracy & operational flexibility, significant energy savings & benefits over peak energy charges are some of the key parameters stimulating the product demand. In addition, ongoing technological advancements including instantaneous energizing of equipment controls motors will enhance the product acceptance over the years. The growing expenditure to develop advanced infrastructure owing to the rapid urban and industrial development has seeded the demand for electricity capacity expansion and technological enhancements which will further complement the business dynamics.

Variable Frequency Drives Market Analysis

 Variable Frequency Drives Market Size, By Voltage

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The low voltage drive segment is anticipated to experience a growth rate of over 4% through 2032 owing to the growing emphasis on energy efficiency across industries, increasing focus on industrial automation, and ongoing technological advancements to improve performance & functionality. These units are cost-effective alternatives to several household, commercial, and industrial systems that require less maintenance further augmenting the product deployment. Numerous industry participants are focusing on research and development initiatives to fulfil the regulatory standards and norms, augmenting the variable frequency drives market size.

In March 2023, Invertek Drives Ltd. announce to open an innovation center at its global headquarters. This facility will receive an investment of over 7.9 million and will offer state-of-the-art R&D facilities for designing of next-gen electric motor control variable frequency drives. This expansion will allow the company to accelerate its VFD production capacity to 1.2 million units from 460,000 annually. Moreover, the accelerating demand for energy efficient systems coupled with technological enhanced systems will further drive the industry growth.

The medium voltage drive segment is set to grow rapidly in the upcoming timeframe, due to the widely integration across heavy-duty industrial operations requiring MW scale power outputs to suffice the high load bearing conditions. Ongoing technological advancements including instantaneous energizing of equipment controls motors along with new product launches across the industry.

For instance, In March 2022, WEG launched CFW900 variable frequency drives at the Drives & Controls 2022 exhibition held in UK. This unit was considered to be the first geared motor range that was fully developed by the WEG and comprises parallel shaft, helical, and bevel gear units offering torques between 50 & 18,000 Nm. Furthermore, a paradigm shift toward the ongoing deployment of energy-efficient products to deliver power security while maximizing the energy utilization will drive the variable frequency drives market growth.

Variable Frequency Drives Market Revenue Share, By Drive,

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The variable frequency drives market from AC drives segment was surpassed USD 16.3 billion in 2023, on account of better functioning capabilities at full load and variable load conditions. Due to the operational attributes of these units offering improved energy efficiency, reduced mechanical stress on the motor and equipment, smoother starting and stopping, and improved process control will increase the variable frequency drive market deployment. These units deliver maximum machine output across a wide range of applications by using numerous motor types such as dynamic linear motors, normal AC induction motors, energy-saving hybrid motors, among others which will fuel the product adoption.


The pump application is expected to dominate the variable frequency drives market through 2032, credited to its broad application possibilities and fast increasing industrial infrastructure. VFDs are commonly used in pumps to provide greater control over the electrical power frequency in order to properly change pressure or flow in the system. Furthermore, favorable scenario for driving energy-efficient systems together with continual technical improvements will further influence the business dynamics.

Replacement and refurbishment of prevailing technologies in small, medium, and big industrial applications along with shifting inclination toward energy efficiency will drive the variable frequency drives market expansion. In addition, the implementation of various energy efficiency regulations reinforced by the respective authorities, in line with a significant movement in customer preference towards renewable technology will stimulate the product penetration. The ongoing integration of monitoring and control systems throughout hydrocarbon exploration and production operations will drive up demand for VFD units.

Asia Pacific Variable Frequency Drives Market Size

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Asia Pacific variable frequency drives market is anticipated to reach over USD 14.5 billion by 2032, on account of steadily developing clean power generation, increasing industrial investments, favorable governmental norms and policies, and the availability of cost-effective products. In addition, rapid infrastructure construction and development along with increasing demand for energy-efficient motor control systems are some of the key factors accelerating the demand for VFDs. Moreover, the elevating requirement for high-tech driven goods across a variety of heavy-duty industrial applications, including metals and mining, oil and gas, and power generation, will positively stimulate the Asia Pacific drives industry landscape. The market for variable frequency drives in US will cross a valuation of USD 2.5 billion during the forecast period.

Variable Frequency Drives Market Share

Key companies in the variable frequency drives market include

  • Siemens
  • Johnson Controls
  • ABB
  • Honeywell International, Inc.
  • Emerson Electric Co.
  • Mitsubishi Electric Corporation
  • Schneider Electric
  • Eaton
  • Rockwell Automation
  • Fuji Electric Co., Ltd.
  • WEG
  • Danfoss
  • Hitachi Industrial Equipment Systems Co., Ltd.
  • Nidec Motor Corporation
  • Bosch Rexroth Corporation
  • CG Power & Industrial Solutions Ltd.
  • General Electric
  • Invertek Drives Ltd
  • Hiconics Eco-energy Technology Co., Ltd.


Eminent manufacturers operating across the market are focusing on strengthening their industry presence by forming strategic alliances and partnerships to introduce new technological innovations along with mergers and acquisitions. For instance, in September 2022, Bosch Rexroth AG completed the acquisition of the Israel based motion control company called Elmo Motion Control Ltd. The takeover is projected to add to the company's product portfolio and help the organization in accelerating its position across automation, smart factory, and robotics domains.

Variable Frequency Drives Industry News

  • In April 2023, ABB launched ACS 2000 medium voltage variable frequency drives suitable for variety of industrial applications. The product comes with the voltage of up to 6.9 kV along with the rated capacity of 400 to 1,000 kV. These units also combine the cutting-edge technology to address industry challenges including the requirement for flexible power supply connections, fewer harmonics, lower energy usage, static var correction, and easy installation and commissioning. These drives are specifically utilized across the cement, mining, metallurgy, pulp and paper, water, electric power, chemical, oil, and gas sectors for fans, pumps, compressors, and other public uses. This launch expanded the company’s product portfolio across the variable frequency drives industry and is set to strengthen its customer base.
  • In April 2022, Rockwell Automation presented a new range of medium-voltage VFD unit namely PowerFlex 6000 with motor control uses from 150 kW to 11 MW along with packed in Type 3R enclosures. These devices are primarily designed for seamless integration across remote and outdoor installations to mitigate the need for control rooms across a wide range of end-user verticals.

This variable frequency drives market research report includes in-depth coverage of the industry with estimates & forecast in terms of “’000 Units” & “USD Million” from 2022 to 2032 for the following segments:

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Market, By Voltage

  • Low
  • Medium

Market, By Drive

  • AC
  • DC
  • Servo

Market, By Application

  • Pump
  • Fan
  • Conveyor
  • Compressor
  • Extruder
  • Others

Market, By End-Use

  • Oil & Gas
  • Power Generation
  • Mining & Metals
  • Pulp & Paper
  • Marine
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
    • Mexico 
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Russia
    • Denmark
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
  • South Korea
    • Middle East & Africa
    • Saudi Arabia
    • UAE
  • South Africa
    • Latin America
    • Brazil
    • Argentina


Authors: Ankit Gupta, Divyendu Sharma

Frequently Asked Questions (FAQ) :

The market size of variable frequency drive crossed USD 21.1 billion in 2023 and is poised to witness a 4.4% CAGR from 2024 to 2032, driven by the escalating demand for energy-efficient systems and stringent regulatory framework concerning energy consumption.
Low voltage drive segment is likely to register 4% CAGR through 2032, credited to their increasing utilization of low voltage frequency drives across several industrial applications due to their low costs and less maintenance requirements.
Asia Pacific market size surpass USD 14.5 billion by 2032, owing to an increased emphasis on clean power generation, supportive government policies, and increasing investments in the industrial sector.
Notable players in this industry include Siemens, Johnson Controls, ABB, Honeywell International, Inc., Emerson Electric Co., Mitsubishi Electric Corporation, Schneider Electric, Eaton, Rockwell Automation, Fuji Electric Co., Ltd., WEG, YASKAWA ELECTRIC CORPORATION, Danfoss, and Hitachi Industrial Equipment Systems Co., Ltd.

Variable Frequency Drives Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 19
  • Tables & Figures: 886
  • Countries covered: 38
  • Pages: 605
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